Don't Blame the Free Market for the Economic Crisis
A lot of people who lack understanding of economics are blaming free markets for our current economic malaise. How can you blame free markets when the markets have NOT been free in this country. Some important examples:
1) The price of money, i.e. the interest rate, has been set by the Fed, not by free markets. Interest rates that were set too low for too long was THE major factor in the housing bubble. It was also a major factor in driving insane profits into the financial industry at the expense of other industries.
2) China pegging its currency to the dollar. This encouraged American companies to move operations to where the labor was cheap. Now they produce it and we consume it.
3) F'ed up tax code that over-encouraged home ownership via the mortgage interest deduction.
IT WAS NOT THE FREE MARKET THAT CAUSED THIS CRISIS.
Graley,David in Qatar, Abitare -- can you add to my list?